B	C	D
The stock of ABC is current selling for		$35.00
The EPS in the coming year are expected to be		$4.25
The company has a policy of having a payout rate of		32.00%
There is a ROE of		15.00%
What is the present value based on the DDM and the present value of zero growth opportunity?
a.	Preseent Value based on the DDM = $35.00
	Present Value of the Zero Growth Opportunity = $30.17
b.	Preseent Value based on the DDM = $25.00
	Present Value of the Zero Growth Opportunity = $22.17
c.	Preseent Value based on the DDM = $37.25
	Present Value of the Zero Growth Opportunity = $30.25
d.	Preseent Value based on the DDM = $53.00
	Present Value of the Zero Growth Opportunity = $50.17

B	C	D
You buy a share of the XYZ Corporation stock for		$23.54
You expect it to pay a dividend over each of the next 3 years.
Year 1	Year 2	Year 3
$1.14	$1.53	$1.29
You plan to sell this stock at the end of year 3 for		$26.22
The required rate of return based on the CAPM is		9.50%
What is the present value of the stock?
What is the expected dividend yield?
a.	Present Value of the Stock = $32.27
	Expected Dividend Yield = 9.40%
b.	Present Value of the Stock = $23.27
	Expected Dividend Yield = 4.90%
c.	Present Value of the Stock = $25.27
	Expected Dividend Yield = 5.10%
d.	Present Value of the Stock = $19.99
	Expected Dividend Yield = 4.90%